Mr. Speaker, I rise to speak in support of a program that makes an enormous difference in the lives of all our constituents: the Community Development Block Grant, or CDBG, program. The CDBG program provides direct federal funding to local…
Mr. Speaker, I rise to speak in support of a program that makes an enormous difference in the lives of all our constituents: the Community Development Block Grant, or CDBG, program.
The CDBG program provides direct federal funding to local governments to make needed investments that improve the quality of life in our communities. These funds are used to prevent homelessness, reduce infant deaths, and provide youth enrichment programs. They are used to rehabilitate housing, to reconstruct residential streets, to help fund domestic violence shelters, to provide seniors with snow removal and lawn care assistance, and to fund important economic development initiatives.
The President has again demonstrated that his budget priorities are upside down and out of step with our communities' needs by proposing a 20 percent cut in formula funding to CDBG entitlement communities. But as the distinguished Ranking Member of the Appropriations Committee, Representative Obey, has pointed out, just looking at this year's proposal doesn't tell the whole story.
The CDBG program is just one of many important domestic priorities that have been subject to a bizarre pattern in which, year after year, the President proposes draconian cuts, then Congress restores some of the funding and declares victory. However, the effect of this is that after several years, the draconian cuts are imposed. Since 2001, the CDBG program has already been cut by more than 22 percent in real dollars.
Yet the President wants to reduce these vital resources to our local communities even further. According to a Congressional Research Service analysis that I requested, the CDBG entitlement communities in my district would stand to lose $2.25 million next year if the President's proposed funding cuts are adopted.
As bad as these numbers sound, it is important to remember that there are real people behind them. During the April recess, two cities in my district, Warren and Southfield, Michigan, were kind enough to show me the impact that CDBG funds have had in their communities.
They have used these CDBG resources to make a real difference in the lives of countless families. I was particularly impressed by the housing rehabilitation programs that represent the largest CDBG-funded program in both communities. These efforts, along with CDBG-funded investments in local parks and roads, have helped maintain vibrant neighborhoods in both cities. I ask that summaries of these programs be included in the record, but I want to share with my colleagues just one example of the powerful difference that CDBG funds have meant to individual families.
Through its Residential Rehabilitation Loan Program, the City of Warren was able to help Michelle Amburgy and her son. I quote:
Michelle Amburgy is a single mother employed by a catering
service. When her furnace stopped working before Christmas
and she and her son were living without heat, Ms. Amburgy did
not have the resources to purchase a new furnace. She says
she, ``. . . tried everywhere to get money for a furnace. .
.'' and was unable to find a program to help her. Luckily the
application she submitted to the City of Warren for a
rehabilitation loan was being processed and according to her,
``. . . the City put a rush on it . . .'' in order to get a
new furnace so she and her son could have heat. In addition
to the furnace, various other improvements were done to her
home, including an update of the electrical and plumbing
systems which she says
were definitely needed but she, ``. . . never would have been
able to afford on my own''.
I hope that the House will remember Ms. Amburgy and her son, and the thousands of other families touched by the CDBG program when we consider funding for the CDBG program in the coming weeks.
City of Warren Residential Rehabilitation Loan Program--CDBG
The City of Warren has spent over $14,370,000 of the
Community Development Block Grant (CDBG) funding it has
received since 1982 on an owner occupied rehabilitation loan
program, which has assisted over 1,000 households. The low or
deferred interest loans are offered to eligible households
for necessary home improvements, including the correction of
dangerous structural defects and the elimination of unhealthy
living conditions. The program provides households who may
otherwise not be able to improve their homes and living
conditions with a means for doing so. For example, Michelle
Amburgy is a single mother employed by a catering service.
When her furnace stopped working before Christmas and she and
her son were living without heat, Ms. Amburgy did not have
the resources to purchase a new furnace. She says she, ``. .
. tried everywhere to get money for a furnace . . .'' and was
unable to find a program to help her. Luckily the application
she submitted to the City of Warren for a rehabilitation loan
was being processed and according to her, ``. . . the City
put a rush on it . . .'' in order to get a new furnace so she
and her son could have heat. In addition to the furnace,
various other improvements were done to her home, including
an update of the electrical and plumbing systems which she
says were definitely needed but she, ``. . . never would have
been able to afford on my own''.
In order to qualify for the program, the household must
meet the definition of low or moderate income which is
adjusted based upon household size. For instance, the total
income for a household of two would have to be below $27,950
in order to be considered low income. If the household
qualifies as low income, payments on the loan are deferred
and no interest is charged. The total income for a moderate
income household of two would have to be below $44,750. If
the household is determined to be moderate income, monthly
payments on the loan are due at a 4 percent interest rate.
All loan payments and loan payoffs are placed into a
revolving account used to fund future rehabilitation loans.
The rehabilitation loan program not only provides funding
needed to make home repairs, it also provides expertise and
guidance through the home improvement process. The City's
inspectors perform a thorough inspection of the home and
determine all items which must be corrected in order to bring
the home into compliance with current housing codes, which
may include updating electrical, plumbing and heating
systems. This work must be addressed through the program. The
homeowner, in consultation with City staff, may also identify
other items which should be done in order to improve the
condition of the property. This may include the installation
of new windows, roofing, and modest kitchen and bath updates.
The City oversees the preparation of specifications, the bid
process and the actual rehabilitation to ensure that the
appropriate work is being done by qualified individuals.
Arthur and Gloria Huard are a retired couple living in
Warren. Mr. and Mrs. Huard were faced with a leaking roof
that was causing structural damage to a portion of their
home. Mrs. Huard says that she and her husband are living on
a fixed income and, ``. . . didn't have the money to pay . .
.'' for a new roof and the necessary repairs to the home. She
and her husband received a rehabilitation loan from the City
of Warren which funded a roof and repair of the structural
damage. They were also able to have new windows installed and
their bathroom updated, including the replacement of flooring
which had been sinking. Mr. and Mrs. Huard were relieved to
have the work done and she says that they were, ``. . . very
pleased . . .'' with the work and that, ``. . . the men that
worked were very nice and helpful''. Mrs. Huard says that the
pension and social security they receive must go to pay
medical bills for her ailing husband and she's relieved that
the loan funds do not have to be repaid to the City until
they sell their home because they are retired senior
citizens.
Many different types of households are assisted with the
City of Warren's CDBG funded loan program. Of the 62
households receiving loans within the past two years, 22 were
female head of household/not elderly, 19 were female head of
household/elderly, 7 were elderly/not female head of
household and 14 were classified as ``other''. For example,
Kevin and Kelly Sorlien are a young couple with three
children of their own. In addition, the Sorlien's also have
custody of Kelly's teenage sister and are responsible for her
care. Mr. Sorlien works full-time and Mrs. Sorlien takes care
of the children and has picked up a part-time job to help
support the family. The Sorlien's needed some improvements
done to their home and Mrs. Sorlien says they couldn't afford
to do them on their own. They applied for a rehabilitation
loan through the City because she says that, ``. . . the
interest rates were lower with the City's loan . . .'' than
they would have been able to get had they gone elsewhere for
a loan. With the City's loan, the Sorlien's were able to get
a new roof and siding and updates elsewhere in the home. Mrs.
Sorlien says that she, ``. . . loves the way my house turned
out . . .'' and was happy that the City was able to make this
program available to her family.
Southfield Home Improvement Program (SHIP) CDBG Funded Residential
Rehabilitation Program
The City of Southfield, over the past 32 years, has spent
close to $7,000,000 of the Community Development Block Grant
(CDBG) funding on the Southfield Home Improvement Program
(SHIP). Since 1975, SHIP has assisted over 930 households.
The program is designed to assist low and moderate income
homeowners afford structural repairs to their home who may
not otherwise qualify for a bank loan.
The loans we give range from small emergency repairs to
large scale structural problems. Although the average loan
amount is $15,000 it is not unusual to have a $25,000 loan on
one property which includes roof repair, plumbing, electrical
and new windows. The clients of SHIP range in income from
extremely low; those on fixed incomes due to age or
disability; and those families with moderate incomes who are
not classified as poverty stricken but don't have sufficient
income for amenities outside of basic living necessities.
Sherry Crammer is a 59 year old widow of 16 years to a
Detroit police officer and has lived in her Southfield home
for 30 years. Her yearly income is $23,868 comprised
primarily of her husband's pension. As a result of poor
health issues, the homeowner incurred high medical bills and
credit card balances forcing her into bankruptcy. In the
early part of January 2006, the homeowner smelled a slight
burning odor coming from her furnace. Upon calling the gas
company, they red tagged the furnace after showing her the
plastic coating on the wires that were melting. The act of
`red tagging' means that the gas appliance is determined to
be a hazard and is not to be used until repaired or replaced.
The call from the homeowner was received by SHIP on a late
Friday afternoon. At 5 p.m. the Housing Inspector went to her
home to examine the crisis and to assist with the application
process. During this initial contact it was learned that she
had an unused wall space heater in a spare bedroom. The
Housing Inspector, with the help of some caring neighbors was
able to get the space heater running until a contractor quote
could be finalized that following Monday and a new furnace
installed. The homeowner was very grateful for all of the
personal attention and service. Before assistance from SHIP,
Mrs. Crammer had contemplated moving into a senior citizen
apartment. SHIP afforded her the opportunity to continue
living in the home she loved.
The Andersons are a young couple who had in the past 2
years gotten married, bought a home in Southfield and started
their own landscaping business. The business was doing okay,
but there wasn't any extra money, most of the profits went
back into the business. The home needed a new roof as well
as electrical and plumbing repairs. With SHIP, the couple
was able to get a 3 percent interest loan that wouldn't
require monthly payments which would have added another
strain to their already tight budget. They will be able to
defer payment of the loan until the sale of their house.
Without a program like SHIP being available this couple
would probably not have qualified for a conventional loan
and may have been the target of predatory lenders.
Mr. and Mrs. Willie Hunter are a family of seven. Their
income consists of a pension, supplemental security insurance
and child support. They just purchased their house a little
over a year ago and needed to make some improvements.
However, they quickly found out the house had more extensive
problems then their budget would permit them to fix,
including a leaking roof. In addition, while the Hunters were
in the process of replacing the kitchen floor, they
discovered under the linoleum and deteriorated subfloor that
they had structural floor framing problems. Application to
the Southfield Home Improvement Program addressed both of
these major issues for the Hunters. They are now able to sit
all together at the kitchen table to enjoy their meals under
a roof that doesn't leak.
The focus of SHIP is ``make a difference in the life of a
family one house at a time''. Total home inspections are
performed to identify housing code violations as well as
abate any lead based paint hazards. The entire process is
coordinated by the equivalent of 1\1/2\ staff positions.
Staff prepares the specifications, reviews bids, communicates
with contractors and oversees the actual rehab work in
addition to processing the completed loan documents and
tracking an average of 800 active loans. The goal is to
complete 20-25 loans per year; making a difference one house
at a time.
Note: Names have been changed to protect the privacy of
program participants.